Shearman & Sterling is representing GE in its acquisition of the aviation business of Avio S.p.A., an Italy-based manufacturer of aviation propulsion components and systems for civil and military aircraft, for $4.3 billion.
GE plans to acquire Avio’s aviation business from Cinven, a leading European private equity firm that has owned Avio since 2006, and Finmeccanica, the Italian aerospace group. The transaction is subject to regulatory and governmental approvals.
“This is a complex, multi-jurisdictional transaction, involving a number of parts moving simultaneously in Italy, the UK and the US,” said Laurence Levy, a London-based M&A partner.
Founded in 1908 and headquartered in Turin, Italy, Avio operates in four continents and employs about 5,300 people, 4,500 of whom are in Italy, including approximately 800 in the space unit. In the jet propulsion industry, Avio is a provider of low-pressure turbine systems, accessory gearboxes, geared systems, combustors and other components. Avio has supplied components to GE Aviation since 1984.
GE, parent company to GE Aviation, already has a significant presence in Italy with more than 7,000 employees in seven GE businesses at more than 20 locations in-country, including a research and development center and learning center. Almost 20 years ago, GE acquired Nuovo Pignone in Florence, which has been transformed into the global headquarters of GE Oil & Gas.
GE Aviation, an operating unit of GE, is a leading provider of jet, turboshaft, and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. Headquartered in Cincinnati, Ohio (USA), GE Aviation employs about 40,000 people and operates manufacturing, overhaul, and repair facilities worldwide.
“We are extremely pleased to have represented GE on this deal, which required us to put together a team of lawyers from across our offices in Europe and the US, including Milan, Rome, London, Paris, and New York,” said Michael McGuinness, a New York-based M&A partner. “Supporting GE and GE Aviation in structuring and negotiating this complex transaction required the full use of our platform — a platform built to support corporates like GE in the US and internationally.”
Added Milan-based M&A partner Fabio Fauceglia, “This is exactly the kind of global, cross-border transaction our firm is designed for. Our fully integrated practice was extraordinarily important in providing the advice and the execution that the company and the deal expected.”
A Shearman & Sterling global team advised GE on this transaction, led by partners Fabio Fauceglia (Milan-Mergers & Acquisitions), Laurence Levy (London-Mergers & Acquisitions) and Michael McGuinness (New York-Mergers & Acquisitions), and including partners Creighton Condon (New York-Mergers & Acquisitions), Jeremy Kutner (London-Mergers & Acquisitions), Don J. Lonczak (Washington, DC-Tax), Clare Breeze (London-Real Estate), Philip Urofsky (Washington, DC-Litigation), and Guillaume Isautier (Paris-Mergers & Acquisitions); counsel Tommaso Tosi (Milan-Capital Markets), Sam Whitaker (London-Executive Compensation & Employee Benefits), Mehran Massih (London-Environmental), Simon Letherman (London-Tax), and Sean Skiffington (Toronto-Mergers & Acquisitions); associates Emanuele Trucco (Milan-Capital Markets), Maria Antonietta Romeo (Rome-Capital Markets), Giovanni Cirelli (Rome-Capital Markets), Marco Barbi (Milan-Mergers & Acquisitions), Francesco Carloni (Brussels-Antitrust/Competition), Milan Thakker (London-European Corporate), James Leslie (London-Tax), Jordan Altman (New York-Intellectual Property Transactions), Blake Spencer (London-Mergers & Acquisitions), Sarah Brufal (London-Finance), David Shennan (London-Finance), Sara Couling (London-Finance) and Michael Jokic (New York-Intellectual Property Transactions); and trainees Alberto Cozzi (Milan-European Corporate) and Ana Stefanovic Grbec (Milan-European Corporate).
